gROUP hEALTH

---

. 

Group health insurance is a type of private health insurance product offered by an employer to employees. In other words, a business or other employer purchases a health insurance policy and offers coverage under the policy to employees. The employer is the policyholder, and they make all the decisions about the specifics of the plan. The employer has the option of offering a single plan or offering multiple plans. Group health insurance is commonly considered the most significant employer-sponsored benefit. It is a primary factor for businesses when shopping for benefits packages for their employees. Because group health is such a powerful tool for attracting talented employees, employers commonly pay 50% or more in premiums. With employer-provided health insurance, the organization must contribute a minimum percentage, and employees pay the remaining amount, usually through a payroll deduction. This minimum percentage in Texas is 50%; however, this amount is waived during Open Enrollment (groups enrolled effective January 1st), and there are no requirements for how much an employer must contribute.

Employer-paid premiums for health insurance are exempt from federal income and payroll taxes. Additionally, the portion of premiums employees pay is excluded from taxable income. The exclusion of premiums lowers most workers’ tax bills and thus reduces their after-tax cost of coverage. This tax subsidy partly explains why most American families have health insurance coverage through employers. Additionally, the portion of premiums employees pay is typically excluded from taxable income. 

Whatever the size of the business, there are health plans that help you create a healthier and more productive workplace that attracts and retains top talent.

Also known as small business health insurance, small group health insurance is available to businesses with two to 50 employees.

Large group health insurance is for any business that has more than 50 eligible, full-time employees.

Employers in either category that purchase group health insurance can choose to offer employees a single plan or multiple plan options. Two of the most common available plans are PPO and HMO:

(PPO) plans offer the most flexibility and the greatest range of options where the insured can receive treatment. PPO plans provide coverage nationwide and allow you to visit specialists without needing a referral. Some healthcare facilities accept only PPO plans.

(HMO) plans tend to be less expensive than PPO plans. They are more restrictive. With HMO plans, the insured individual must choose a designated physician, known as a primary care physician (PCP), and get referrals before visiting specialists. Many states restrict HMO plans to coverage in-state, which can cause issues during travel.